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Berlin has benefited significantly from German reunification. However, some persistent problems have accompanied the gains since the fall of the Berlin Wall. These problems include high unemployment, loss of population, and a declining industrial base. Disparities of this scale introduce fractures in a city which in other respects has recovered its unity. This study examines and makes proposals for distressed areas in both the inner-city core and in peripheral areas where there is a need for targeted regeneration measures. Such measures would help integrate immigrant communities, improve educational opportunities, address youth issues, invest in property development and support the growth of small and medium-size enterprises. Building on previous urban renaissance studies, this report adds a new dimension to the lessons learned about urban regeneration through a focus on youth, migration and identity to help create and exploit Berlin's under-developed assets. The betterment of distressed areas in Berlin will be a vital ingredient in the capital's overall strategy for economic and social development, with policies in this area fully integrated into city-wide perspectives.